Ten Principles For Financing

Mark Davis, a DFJ Gotham Ventures investor, recently wrote to remind enterprises that the ten principles should be followed in the process of raising funds so that the success rate of raising funds can be greatly raised.

February 20th, according to foreign media reports, in the past year, due to the impact of the global economic recession, venture capital investors have tightened their purse strings, and getting financing for enterprises has become more difficult.

Mark Davis, a DFJ Gotham Ventures investor, recently wrote to remind enterprises that the ten principles should be followed in the process of raising funds so that the success rate of raising funds can be greatly raised.

1, contact only those venture capitalists who are interested in your project. This can be more targeted, save the time between investors and enterprises, and avoid confusion between the two sides.

2, tell the real intention; honesty is the best way to impress VC. Through your sincerity, investors can see the development potential of the enterprise and arouse the interest of investors.

3, negotiation with VC should be patient; VC people are usually busy, so you have to be patient and wait for their recognition.

Maybe sometimes it's an excuse to be busy, but be patient when you can't get the e-mail reply from VC.

Maybe VC is waiting for a different entrepreneur.

4, actively share information; this will keep VC interested in your project.

To do this, the company should disclose some company related information to VC and react quickly to VC's requests.

5, do not take rejection as negation. There are many reasons why enterprises fail to get VC investment, which is often not related to your company itself.

So when rejected, do not deny the value of the company, and do not affect future progress.

6, do not harass VC too much; VC is also a human being, so that is no longer necessary.

7, focus on promoting enterprise success; this should be a two-way approach. For wind companies and enterprises, correct decisions and maximization of shareholder value are the same rules.

8, timely feedback and new ideas; this is also very obvious, do not need to repeat.

9, don't tarnish the reputation of Vc firms because of your personal preferences; do not disapprove of your decision because you don't like or disapprove of VC's decision.

The world is very small, the circle of VC is also very small, your behavior will be known by more people.

Don't let your careless efforts make the efforts of fundraising earlier.

10, establish long-term contacts with VC.

Successful entrepreneurs are able to get sustained support from venture capitalists, and developing personal relationships with VC can make the fundraising process smooth.